Reforms aligning with the Australian Government's infrastructure priorities

Infrastructure Australia has assessed reforms against the Australian Government's three objectives for infrastructure, as defined in our Statement of Expectations.2 Namely, that infrastructure:

•  provides or underpins services that deliver economic and social benefits to Australians

•  has an important role in shaping cities that are productive and liveable

•  provides connectivity to regional and remote parts of Australia.

We translated these objectives into five policy priorities then assessed the impact of recommendations against them.

Under the conditions detailed in the Australian Government 2021-2022 Budget Outlook, the reforms most likely to strongly increase Australia's economic performance are reforms to the functioning of the infrastructure sector, as well as the energy and water sectors (see Table V.2). The strong focus on productivity and innovation in the infrastructure sector recognises the strong focus on the sector to supporting recovery and continuing to operate during potential COVID-19 outbreaks. Access to water and clean, affordable and reliable energy is also critical to Australian businesses and households.

Table V.2: Reforms to deliver economic benefits

Reforms to support the quality of life of Australians are fundamental to the 2021 Plan. Reforms in many sectors are impactful against this vision, however hold a common thread of supporting community choice and flexibility in access to infrastructure (see Table V.3). Enhanced customer-centricity, both business and household, in telecommunications and digital, water and transport are seen as central. So too, enhancements to infrastructure resilience and supporting growth in Northern Australia and Developing Regions are priorities. This assessment assumes economic conditions consistent with those detailed in the Australian Government 2021-2022 Budget Outlook.

Table V.3: Reforms to deliver social benefits

The Australian Government has prioritised supporting the productivity of Australia's cities. The reforms to support the productivity of cities, is closely aligned to enhancing the economic performance of the country as a whole (see Table V.4). However, added emphasis should be given to managing the pipeline of large infrastructure projects, electricity transmission rule changes and supporting the electricity distribution grid to cope with rapid electricity system decentralisation if city productivity is to be prioritised.

Table V.4: Productive cities reforms

In addition to productivity, the Australian Government has asked Infrastructure Australia to emphasise the liveability of cities (see Table V.5). Water security is the only reform to perform strongly under both priorities, and is joined by better valuing water. The shift to cleaner and cheaper energy is prioritised for liveability over reforms to support the functioning of the grid. Building from the experience during the COVID-19 pandemic, supporting the resilience of the community to future shocks and stresses is highly central to urban liveability. The impacts of COVID-19 have also emphasized urban Australia's incumbent congestion challenge so enabling mobility choice will remain critical.

Table V.5: Liveable cities reforms

Reforms to support greater equity in access to infrastructure services for people and businesses in regional Australia are critical (see Table V.6). In an increasingly digitalised world, this will include increasing the user centricity of telecommunications and digital services, and supporting digital adoption in the infrastructure sector. Defining minimum service levels for communities, supporting their resilience and particularly securing water supply will be important.

Table V.6: Connected regions reforms